Key Takeaways
- Gemini has accused the CFTC of pursuing a personal agenda through a lengthy and unjust investigation.
- The agency’s case reportedly relied on a discredited whistleblower who was found guilty of fraud.
- Despite strong contradictory evidence, CFTC’s enforcement division persisted in targeting Gemini, raising accountability concerns.
Gemini, a cryptocurrency exchange that was co-founded by Cameron and Tyler Winklevoss, has filed a scathing complaint against the Commodity Futures Trading Commission (CFTC) for allegedly running a seven-year “lawfare” campaign motivated more by office politics than regulatory imperative.
In a detailed 13-page letter submitted on June 13 to CFTC Inspector General Christopher Skinner, Tyler Winklevoss outlined what the exchange calls a misuse of federal authority and millions in taxpayer dollars to pursue unjust charges.
The lawsuit asserts that the CFTC Division of Enforcement (DOE) unfairly isolated Gemini on unsubstantiated allegations out of a whistleblower complaint filed by Benjamin Small, a former chief operating officer of the company.
As Gemini alleges, Small was dismissed for enabling a $7.45 million rebate fraud scheme and later started a vindictive attack against the company by filing malicious complaints with regulators.
Gemini Bitcoin Auction Dispute Fueled Futures Lawsuit
Gemini’s filing indicates that CFTC’s lawsuit was a follow-up on Small’s whistleblower complaint, though it was dismissed in a 2022 arbitration award. The arbitrator found that Small made false credentials, lied during employment, and misrepresented himself as a whistleblower.
Nonetheless, CFTC enforcement attorneys reportedly used his submission as the central evidence in launching an aggressive investigation. Despite the Department of Justice declining to pursue any charges and the arbitration findings discrediting Small, the CFTC moved forward with its lawsuit in 2022.
That suit alleged that Gemini misled regulators about its Bitcoin auction mechanism in 2017, which played a role in supporting the first Bitcoin futures contract launched by Cboe. The company later settled the case for $5 million without admitting wrongdoing.
Gemini Calls for Accountability as CFTC Faces Internal Scrutiny
In the complaint, Tyler Winklevoss contends that the CFTC staff, including prosecutor Andrew Rodgers, were motivated by a desire for high-profile victories rather than objective law enforcement.
Rodgers left the agency soon after the case was settled and now promotes the company investigation as a career highlight in his private-sector biography.
Gemini’s appeal comes amid growing calls for internal reform at the CFTC, with Acting Chair Caroline Pham having recently criticized the culture within the enforcement division.
While the company expressed cautious optimism about her leadership, the letter warned that genuine reform will require deep structural changes to restore fairness and trust in regulatory processes.
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